Eaton lays off 475; Micron Tech slips after earnings 9-29-98

TiareRath

Eaton Corp. (ETN)
ETN, -0.43%
said it will take a one-time $42 million charge in its third quarter for laying off 475 more workers from its semiconductor equipment operations division. The company, which supplies equipment to semiconductor manufacturers, has slashed 1,050 jobs, or 42 percent of its workforce, due to decreased demand from the semiconductor industry. The company said it's closing its Austin, Texas, plant and cutting about half the jobs there. The remaining workers will be sent to its Beverly, Mass. plant. In addition, Eaton will combine its thermal processing systems business with its fusion systems division. In all, the company's restructuring will cost 38 cents a share in its third quarter. It expects $4 million in both fourth-quarter and first-quarter charges as well. Shares rose 1/16 to 65 3/8. See press release.

Semiconductor chip company Micron Technology (MU)
MU, +0.68%
reported a narrower-than-expected losses of 42 cents a share for its fourth quarter. While the loss was dismal compared to 1997's fourth-quarter profit of 33 cents a share, it beat analysts' estimates of 54 cents a share. Sales declined to $692 million from $946 million in the year-ago quarter. Shares fell 2 1/4 to 31 5/8 after analysts gave mixed reports of the company's earnings. See full story and press release.

Personal computer seller Micron Electronics (MUEI)
muei
, whose parent company is Micron Technologies, reported earnings that beat expectations. The company reported fourth-quarter earnings of 8 cents a share vs. 16 cents a share in the year-ago period. Micron Electronics was expected to profit 2 cents a share during the quarter. Micron Electronics' 1998 fourth-quarter profits did not include extraordinary items that benefited net income by 9 cents a share. The company's quarterly revenue declined to $339 million from $513.1 million in the year-ago quarter. PC inventories fell 70 percent to $27.7 million, but its PC unit sales rose 9 percent from its third quarter to its fourth. Notebook sales fell 20 percent because of delays for transferring to Pentium II notebooks, the Micron Electronics reported. Shares rose 1 3/16 to 18 1/8. See press release.

Shares of newly-public PC Connection (PCCC)
pCCC
lost 52 percent of their value Tuesday following an earnings warning for its fourth quarter. The personal computer marketer said earnings will be between 18 cents a share and 22 cents a share vs. analysts' estimates of 24 cents a share. The company cited slower sales and lower product availability of certain computers. PC Connection stock lost 10 45/64 to 9 15/16. See full story and press release.

Computer hardware and software networking company Echelon (ELON)
ELON, +0.22%
warned its third-quarter losses will be wider than analysts estimated as revenue drops 20 percent lower than expectations. The company cited postponed orders from North American and European original equipment manufacturers. Echelon also said fourth quarter earnings won't make up for its third-quarter shortfall in its year-end earnings. Analysts expected Echelon to lose 3 cents a share. The stock plummeted 3 1/4 to 2. See press release.

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